Executive Benefit Solutions

An Affordable Insurance Solution

Many people allow their term life insurance policies to expire once their children are grown. This may not be a good idea, especially if you have other bills and your spouse would need continued financial support. But a new term policy can be quite expensive when you are older. Survivorship life insurance may be a more cost-effective solution.

Coverage for Two

Survivorship life insures the lives of two people, typically a married couple, and pays a death benefit after the death of the last-surviving covered person. For this reason, it is sometimes called second-to-die insurance. Because only one death benefit is paid and premiums are based on the life expectancies of both insured individuals, the cost is usually less than premiums for a policy covering either life alone. And it may be possible to obtain coverage for a spouse who has been rejected for an individual policy. Survivorship policies are also used to insure business partners, and options may be available to insure more than two people.

Survivorship policies are typically permanent life insurance, which offers lifetime coverage and stays in force as long as you pay the premiums. The death benefit of a survivorship policy could be used to leave a legacy for your heirs, pay taxes, settle an estate, and pay other end-of-life expenses.

A portion of the premium goes into a cash-value account, which accumulates on a tax-deferred basis throughout the life of the policy. Any cash value accumulated at the time the first spouse dies might be used to help support the surviving spouse. Of course, loans and withdrawals will reduce the policy’s cash value and death benefit. Withdrawals of the accumulated cash value, up to the amount of the premiums paid, are not subject to income tax. Loans are also free of income tax as long as they are repaid.

As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing insurance company.

Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable.

This site is not a solicitation of interest in any of these products in any other state.

IMPORTANT CONSUMER INFORMATION: Donald Terry Jr. may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Donald Terry Jr. that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advise for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary hisrtory of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution he represents, contact your state securities administrator.

Insurance products from the Principal Financial Group® are issed by Principal National Life Insurance Company (except in New York), Principal Life Insurance Company, and the companies available through the Preferred Prouct Network, Inc. Securities and advisory products and services offered through Principal Securities Incorporated, Member SIPC, 800/247-1737, a member of the Principal Financial Group®. Donald Terry Jr., Principal Securities Registered Representative and Financial Advisor. Principal National, Principal Life, the Preffered Product Network, and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392. Donald Terry Jr., Principal National and Principal Life Financial Representative, Principal Securities Registered Representative, Financial Advisor. Executive BEnefit Solutions is not an affiliate of any company of the Principal Financial Group®.

Principal Life maintains certificates of authority to transact insurance in all 50 states. Principal Life NAIC identification number is 61271. Principal National identification number is 71161.